Well Being Rises in Every State but Michigan

Michigan is the only state in the U.S. where the average resident’s well-being has declined from 2000 to 2010, according to a Measure of America report published by the Social Science Research Council.

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The skyline of Detroit at night

Co-authors Kristen Lewis and Sarah Burd-Sharps quantified the well-being of American workers from 2000 to 2010 using the Human Development Index, a composite statistic of life expectancy, education and earnings. Over those ten years, Michigan’s score fell due to a $7,000 decline in personal income. The collapse of the auto industry and the subsequent disappearance of manufacturing jobs are largely responsible for the fall.

Yet, North Carolina, which has approximately the same population size as Michigan and lost an even higher share of manufacturing jobs over the decade, didn’t experience the same decline in human development. Why? According to the report, it’s because North Carolina spent three times more per person on higher education than Michigan in 2010. “North Carolina’s public and private investment in building a workforce with the skills for new jobs in the life sciences, telecommunications, and software development helps sustain a competitive economy and a decent standard of living,” write Ms. Lewis and Ms. Burd-Sharps.

Washington, D.C. saw the largest gain in its human development score due to the education level of its residents and the relative rise in real income. Since Washington has the largest share of residents who have recently shifted from another state, Ms. Lewis and Ms. Burd-Sharps warn against using the nation’s capital as a point of comparison. The highly-educated labor force that resides in Washington moves in and out during each election cycle.

Besides Washington, only five states — Montana, New Mexico, North Dakota, South Dakota, West Virginia and Wyoming — saw real income growth over the 10-year time span. The increase came in large part from people moving temporarily into these states to work in extractive industries such as coal mining and natural gas fracking. Though the sector tends to pay higher than average, these jobs aren’t necessarily beneficial for human development, write Ms. Lewis and Ms. Burd-Sharps. People who work in these industries face hazardous labor conditions and have short careers. The rise of fracking boom towns has also resulted in a vast array of social problems for long-time residents. Despite the increase in earnings, all five states rank in the lower half of the Human Development Index. (See an interactive map.)

“We aren’t paying attention to data that measures how Americans are actually doing,” said Ms. Burd-Sharps in a phone interview. “Overreliance on economic indicators like GDP gives a misleading signal of ordinary American’s well-being.”

Connecticut’s GDP is about the same as Wyoming’s, yet the New England state ranked the highest among all states in human development. The average resident of Connecticut is nearly 50% more likely to hold a college degree, can expect to live two and a half years longer and makes about $7,000 more than the average person living in Wyoming.

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